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Building Economics and Cost Control
Building Economics and Cost Control
Building Economics and Cost Control
Cost Control
n
Ct
NPV = Ʃ - C0
t=1 (1+k)t
C1, C2 ….. Represent cash inflow in year 1,2 ….,
k is the opportunity cost of capital
C0 is the initial cost of investment
n is the expected life of the investment
* k is assumed to be known and is constant
Short-term budgets.
Current budgets.
Flexible budget
eliminated.
Less Muda = More happy clients (as it
impacts quality, cost and delivery of products and
services)